TCS is one of the leading IT companies in India with over 50,000 employees. Every year, TCS announces TCS Salary Hike Policy 2024 for its employees to motivate them and help retain top talent. In 2024, TCS will implement its new salary hike policy which aims to provide fair compensation across all positions based on performance.
This article provides a detailed overview of TCS Salary Hike Policy 2024across different positions from entry-level to senior management.
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Salary Hike Percentages
TCS has announced the following salary hike percentages for different levels in 2024:
- Freshers/Entry level employees: 15-20%
- Associates (2-4 years experience): 12-15%
-Senior Associates (4-6 years experience): 10-12%
-Managers (6-10 years experience): 8-10%
-Senior Managers (10-15 years experience): 7-9%
-Associate Vice Presidents: 6-8%
-Vice Presidents: 5-7%
Compared to 2023, the hikes are higher across all levels. For freshers and junior employees, the hikes have been increased the most to attract young talent. The hikes are relatively lower for senior roles to control expenses. Overall, the hikes aim to be competitive in the current market.
TCS Salary Hike Policy 2024
In 2024, TCS has introduced a performance linked criteria for salary hikes. Earlier, everyone used to get increases based on their grade/level. Now, individual performance will also be a key factor.
Employees whose performance rating is ‘Outstanding’ can expect to get salary hikes at the higher end of the range specified for their level. For example, a manager with ‘Outstanding’ performance may get a 10% hike.
Employees with ‘Good’ or average performance can expect hikes around the median of the specified range, for example 9% for a manager.
For employees with ‘Below average’ performance, the hikes may be at the lower end of the range or even lesser based on their rating. The policy aims to reward high performers.
Stock Options: TCS Salary Hike Policy 2024
In addition to higher salary hikes, TCS will also grant stock options to around 500 top performing employees in 2024. Earlier, stock options were only given to senior management.
The quantum of stocks granted will depend on the candidate’s level and past performance. On an average, employees can expect stock options equivalent to 6 months to 1 year of their current CTC.
Vesting of stocks will happen over 3-4 years based on continued employment. This is a major career and wealth creating opportunity for deserving employees.
Changes in Allowances
Along with hikes in basic pay, TCS has also revised some of the allowances in 2024:
- City Compensatory Allowance (CCA): Increased by 15-20% for metros like Bengaluru, Hyderabad, Pune etc. No change for other cities.
- Children Education Allowance: Increased from Rs. 1200 to Rs. 1500 per month per child (maximum 2 children).
- Food Coupons: Increased value from Rs. 750 to Rs. 1000 per month.
- Conveyance Allowance: Increased from Rs. 500 to Rs. 750 for those using own vehicle. No change for others.
- Medical Insurance: Coverage increased from Rs. 2 lakhs to Rs. 3 lakhs.
These changes in allowances will boost the overall salary cost to retain talent amid high inflation.
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Additional Increments:TCS Salary Hike Policy 2024
Besides annual appraisals, TCS is introducing more frequent increments for deserving employees in 2024. Employees who take up higher roles/profiles or are promoted during the year may get additional increments of 5-10% depending on the increased responsibilities.
For example, an associate promoted to senior associate role may get a 5% increment immediately on promotion apart from the annual hike. Similarly, managers taking international assignments may get 10% increment for the duration of the project.
This aims to reward employees monetarily for higher roles without waiting for the next annual appraisal cycle. It will boost motivation levels.
Exceptions in Salary Policy
While most employees will get hikes as per the percentages announced, there may be some exceptions based on specific employee circumstances:
- New Joinees (less than 6 months): May get lesser hikes of 8-12% depending on experience
- Under performers: For employees with ‘Below average’ ratings, hikes may be deferred or be around 3-5%
- Attrition cases: For employees who have resigned and rejoined, hikes in the first year may be restricted to 5-8%
- Global Mobilization: Employees moving to different countries/projects may get higher increments up to 15-20%
- Market adjustments: Key talent may be given counter offers and hikes up to 25-30% to retain them amid high demand
Such exceptions aim to balance individual equity with overall cost management for TCS.
Budget & Implementation
TCS has allocated a salary budget of Rs. 700 crores for payouts towards the new policy in 2024. This is 15% higher than last year’s budget of Rs. 600 crores.
The policy will be implemented in two parts – the salary hikes will be reflected in March payroll while stock allocations will be completed by September after joining formalities.
Detailed appraisal cycles have already commenced across teams to assess performance and finalize increments. Announcements will be made to all employees by February end.
HR Teams have been trained to handle queries and ensure smooth implementation. The new compensation package aims to boost morale and retain top talent.
Conclusion
With its new salary policy focusing on higher increments, performance linkage and other incentives, TCS aims to stay an ‘Employer of Choice’ amid growing competition for skills. The revamped policy comprehensively covers all levels and aspects of compensation.
If implemented smoothly, it has the potential to significantly boost employee motivation and satisfaction. This will help TC attract and retain the best talent as it expands its global operations over the next few years. The ambitious salary budget indicates TCS’s commitment to compensate and care for its most important assets – its employees.
Overall, the new policy establishes TCS as an industry leader in providing competitive compensation and rewards. It is poised to strengthen employee engagement and organizational productivity in 2024.